S&P is entering fast recovery period
The S&P 500 index saw a rapid growth on April 6. The index has been reinforced by a sharp drop of the new coronavirus cases.
S&P’s growth has been accompanied by the rallies of other major indexes. Dow Industrials has gained 1 200 points. Consumer goods and real estate have gone up by 3-8%.
The S&P 500 banking index has risen by 7.2% during its best day of trading in over a week. Bank of America, Citigroup, Wells Fargo, as well as JPMorgan, have all gained from 5.8% to 8.8%.
As the number of new cases has gone down in the last days, the authorities have expressed hope, that the pandemic is gradually leveling off. The investors have found new hope about the markets. According to some forecasts, S&P is going to recover around US$1 trillion.
However, the investors are warning, that it is too early to be completely confident. During the 2008 crisis, the index has remained unstable even after the main period of volatility has ended.